APICS Certified Supply Chain Professional (CSCP) — Question 276

Which of the following modes of transportation is considered a low fixed cost and medium variable cost choice?

Answer options

• A. Water
• B. Truck
• C. Rail
• D. Air

Correct answer: B

Explanation

The correct answer is B, Truck, as it typically has lower fixed costs compared to rail and air transportation, while maintaining a moderate level of variable costs due to fuel and maintenance. In contrast, options A (Water) and C (Rail) generally have higher fixed costs, and D (Air) has both high fixed and variable costs, making them less suitable for this classification.